GROWTH 2011 Annual Report Our Industry-Leading Fleet

Navigating GROWTH 2011 ANNUAL REPORT Our Industry-Leading Fleet No. in Operation/ Type On Order Aircraft Overview Customers New-technology freighter offering 16% more revenue cargo volume than the benchmark 747-400, plus improved fuel-burn efficiency 9 from new engines and wing design (3 in 747–8F service; 4 to be delivered in 2012; 2 in 2013) The industry benchmark for operating performance in the intercontinental air-freighter market due to its low cost per ton-mile 24 and large cargo capacity (21 747-400Fs; 3 747-400BCFs) 747–400F Modified 747-400 providing primary transport of major Boeing 787 Dreamliner assemblies 4 from suppliers around the world 747–400LCF Our heritage of operational excellence now extends to Boeing 747 passenger aircraft, 4 seating 189–474 passengers in two configurations for any charter mission 747–400P Mid-size, twin-engine passenger aircraft for various long-haul charters, seating up to 3 375 passengers 767–300ER A fuel-efficient freighter aircraft with low noise levels and all-digital flight deck, 5 ideal for supporting DHL with time-definite express cargo 767–200 2011 Annual Report :: Page 1 AAWW is the parent company of Atlas Air, Inc. (Atlas), Titan Aviation Atlas Air Leasing (Titan), the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar), and 49-percent owner of Global Supply Systems Limited (GSS). We Worldwide are the leading global provider of outsourced aircraft and aviation services, and we operate the world’s largest fleet of Boeing 747 aircraft. Financial and Operating Highlights For the Year Ended ($ in millions, except per share) 12/31/11 12/31/10 % Change Operating revenues $1,398.2 $1,337.8 4.5 Operating income1 151.1 227.9 (33.7) Pretax income1,2 157.0 233.1 (32.6) Net income attributable to common stockholders3,5 96.1 141.8 (32.2) Fully Diluted EPS4,5 3.64 5.44 (33.1) Cash, cash equivalents and short-term investments $ 195.2 $ 595.1 (67.2) Debt obligations 750.0 487.2 53.9 Fleet aircraft (average)6 33.9 29.5 14.9 Block hours 137,055 128,358 6.8 Block hours/operating aircraft 4,378.8 4,488.0 (2.4) 1) 2011 includes pre-operating expenses of $17.1, special charge of $5.4 and gain on disposal of aircraft of $0.4. 2010 includes net accrual of $16.1 for legal settlements, gain on disposal of aircraft of $3.6 and pre-operating expenses of $0.6. 2) 2010 includes an $8.8 litigation settlement receipt. 3) Adjusted net income attributable to common stockholders excluding pre-operating expenses, gains, settlement items and special charge: $108.8 in 2011 and $150.4 in 2010. 4) Adjusted diluted EPS excluding pre-operating expenses, gains, settlement items and special charge: $4.12 in 2011 and $5.77 in 2010. 5) Adjusted net income attributable to common stockholders and adjusted diluted EPS are non-GAAP measures that exclude certain items. See Page 42 of our 2011 Annual Report on Form 10-K, included with this Annual Report to Stockholders, for a reconciliation to the most directly comparable financial measures in accordance with GAAP. 6) Fleet Aircraft = Operating + Dry Lease + Out-of-Service Aircraft (2011: 31.3 + 2.2 + 0.4; 2010: 28.6 + 0.8 + 0.1). Page 2 :: Atlas Air Worldwide We Carry the World Delivering Maximum Value Atlas Air Worldwide is a recognized leader in global airfreight, delivering a powerful combination—an efficient, wide-body fleet; reliable, cost-effective operations; and superior customer service. Our new passenger-charter operation embraces our value proposition, offering the flexibility and convenience our customers require to transport passengers safely and comfortably, across a country or around the world. To Stockholders To Customers With the largest fleet of Boeing 747-400 freighter Atlas Air Worldwide delivers value. Every day aircraft, we are the only outsource provider with of the year. In every corner of the world. With a the new-technology 747-8F. Our -8Fs will drive vol- unique combination of innovative services and umes and profitability in our core ACMI business, solutions, we empower our airline, express deliv- and our growing CMI operations and passenger ery, freight forwarder and charter customers to charter business will complement that growth as increase fleet flexibility and network efficiency; we drive our revenues and earnings to higher drive an expanded global footprint; and effectively sustained levels. capitalize on growing market opportunities. Page 4 :: Atlas Air Worldwide Flexible Solutions Provider Customers choose to form long-term relationships with us due to the unmatched combination of our modern aircraft assets, proven performance, and value-added solutions. Beginning with the global scale and scope of our fleet, our ACMI, CMI and charter service solutions enable our customers to effectively expand their capacity and operations, and capitalize on strategic growth opportunities. Customers also benefit from our interoperable crews, as well as our flight scheduling, fuel-efficiency planning and maintenance-spare- coverage solutions. ACMI Charter Dry Leasing Our ACMI (Aircraft, Crew, Leading global shippers, freight Titan offers global customers the Maintenance and Insurance) forwarders, manufacturers and added benefits of dry leasing, a customers receive a modern the U.S. military rely on our solution that provides access to 747-8 or 747-400 freighter crewed, modern Boeing 747 fleet to carry efficient aircraft and engines maintained and insured by us. their cargo safely, efficiently and through lease rather than pur- Our CMI (Crew, Maintenance cost-effectively. Our military chase, helping to minimize and Insurance) service crews, and commercial charter passenger capital outlays. Titan’s distinct maintains and insures 747-400 customers enjoy our modern competitive advantage arises passenger and freighter aircraft 747-400s and 767-300ERs to from our deep domain expertise as well as 767-200 freighters comfortably transport them in the management and opera- supplied by our customers. where they need to be, on time, tion of outsourced aircraft. around the world, in several aircraft configurations. Atlas Air’s 747-400 VIP aircraft carried UK Prime Minister David Cameron and a delegation of 40 business representatives on a four-day trade-building visit to East and Southeast Asia in April 2012. Page 6 :: Atlas Air Worldwide We are increasing our operational strengths, improving our business and product mix, and enhancing our block-hour-volume growth prospects. To Our Stockholders: Imagination. Innovation. Initiative. insurance) marketplace, where we are the Driving our initiatives is a seasoned and Execution. world’s largest operator of 747 freighter talented management team under the aircraft. outstanding leadership of our Chief Synchronized with modern assets, a Executive Officer, Bill Flynn. Supporting global scale and established financial In addition, we are growing our CMI—or Bill are our Chief Operating Officer, strength. crew, maintenance and insurance—service John Dietrich; Chief Commercial Officer, for customers on an outsourced basis. Our These drivers of value and growth are Michael Steen; Chief Financial Officer, asset-light CMI operations complement hallmarks of Atlas Air Worldwide’s resilient Spencer Schwartz; and General Counsel, our core business activities, enable us to business model—and they exemplify our Chief Human Resources Officer and deliver added value to an expanded group global leadership in outsourced aircraft Secretary, Adam Kokas. of customers, and are generating increased and aviation operating services. revenues and earnings for the company Looking forward, my fellow board members Our strategies and actions concentrate with minimal capital investment. and I are very eager to collaborate with on secular growth opportunities in our Bill and his team as we deliver additional We’ve also introduced new passenger- business. We are also expanding our value to our customers, further enhance charter offerings for military and com- operational platform to provide additional our performance, and drive future revenue mercial customers, and expanded into value-added services. And we are capital- and earnings growth for our stockholders. an additional, attractive gauge of aircraft izing on the scale and scope of our modern, —the Boeing 767, which will be an impor- efficient fleet and solid balance sheet. tant part of our fleet strategy going forward. All this provides us an even-greater ability In the dry leasing space, our Titan sub- to seize opportunities and accelerate value sidiary has acquired three aircraft and and growth for our customers and investors. Eugene I. Davis associated customer leases, and is con- Chairman of the Board To become more profitable, we are tinuing to evaluate additional high-return April 20, 2012 increasing our operational strengths, investment opportunities. improving our business and product mix, Complementing our growth initiatives and and enhancing our block-hour-volume adding to our earnings quality, we con- growth prospects. tinue to strive for additional cost improve- These initiatives start with our next- ments and productivity enhancements generation 747-8 Freighter aircraft, which through our Continuous Improvement will be the cornerstone of our fleet going efforts. We also continue to benefit from forward. We are the only outsource opera- our strong financial position, credit quality tor with these aircraft, and we expect them and ability to grow our business while to extend our leading industry position in managing our balance sheet leverage. the ACMI (aircraft, crew, maintenance and 2011 Annual Report :: Page 7 2011 was a year of building and growing. We expanded our business platform, invested for the future and made meaningful progress on initiatives that will drive earnings growth and stockholder value. To Our Stockholders: Building and Growing • We developed and implemented a com- • Second, both our cargo and passenger prehensive new AMC Charter passenger operations earned Operational Safety 2011 was a year of building and growing business.

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